An integrated framework for product line design for modular products: product attribute and functionality-driven perspective

Abstract

The purpose of this research is to facilitate original equipment manufacturers operating in a single market segment to frame their product line design strategy that pertains to offering right product attributes with right attribute level in the right product profile within a market segment. Through this research, we attempt to establish a link between functional level design of product attributes with commercial objectives of the enterprise. Initially, by deriving the functional importance of product attribute levels of individual product attributes within a product profile, demand and functional importance data are generated. Utilising the function-based cost estimating framework and multi-linear regression methodology, we determine the cost and product development time coefficients for respective product attributes. Finally, a mixed integer quadratic programming-based mathematical formulation is developed that includes maximisation of product premium and minimisation of various costs as major objectives under the assumption that manufacturer seeks to offer optimal number of product profiles within the market segment. Employing the commercial solver LINGO, the integrated framework is solved. The entire framework is illustrated using the operator cabin of heavy construction machinery.